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With a valuation of USD 672 billion and contributing to about 10% of GDP, the Indian retail industry has seen significant growth with some strong players entering the market. Although India has a low retail penetration compared to other countries like the United States, where it is 85%, the Indian economy is expected to grow 7.2% and 7.7% in FY18 and FY19, respectively, according to the International Monetary Fund (IMF). Private labels are those products or services that are provided by a company under another company’s brand. Although this concept of private labels is at an early stage with an estimated share of less than 7–8% of the retail sales of the organized sector, it is growing quickly. As far as the market for private labels is concerned, the category of food alone contributes 76% of the total sales.
In our research work, we have analyzed factors like price, store loyalty, store image, packaging, visibility and the kind of product that influence the purchase of private labels in the Indian market. Also, we investigated the strength of relationship, if any, between price, store loyalty, store image, packaging, visibility and the kind of product and purchase of private label products.
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- Factors Impacting Purchase of Private Labels in India
- Chapter 8
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